Double Taxation Germany/Netherlands

Last activity 18 January 2021 by beppi

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tomasiashMember17 January 2021 21:42:35

Dear Expats,

I have a question regarding double taxation in my situation. I am a Dutch national, a freelancer who currently lives and works in Germany. I get assignments from german clients, I perform them in Germany, but my dutch agency proceeds the payments, so I’ve got payed from NL. I just want to double check wether this construction won’t put me in situation where I will have to pay taxes also in NL?

Thank you in advance,

Tomer

beppiGermany - Singapore Expert18 January 2021 07:25:23

15327

By default, your entire world income is taxable here, while you are residing in Germany (regardless of additional taxation elsewhere).
This default can be overwritten by bilateral tax treaties, which Germany has with all EU countries (among others).
In most such treaties, some income is defined as taxable (only) in the source country. In most cases, pay for work or services is taxable where the work is performed (and not where the customer is located).
This is regardless of where and how you are paid.
So you should check the Germany-NL tax treaty. A professional tax consultant is also advisable, as doing things wrongly (also unknowingly) can be a criminal offense!
(Remark: In any case, you have to list your entire world income in your yearly German tax declaration, because it's their decision, not yours, what is taxable and what not. Furthermore, even non-taxable income can have an effect on your tax rates on taxable income.)

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